The publication of the AI Act

Why an Artificial Intelligence Act (“AI Act”)?

The AI Act seeks to improve the functioning of the internal market by creating a consistent legal framework for developing, marketing, and using artificial intelligence (“AI”) systems in the EU. The Regulation ensures the free movement of AI-based goods and services across the EU, and aims to lessen administrative and financial burdens for businesses, especially small and medium-sized enterprises (SMEs).

At the same time, the AI Act aims to encourage the adoption and innovation of trustworthy AI while ensuring high levels of health, safety, and fundamental rights protection. This includes protecting democracy, the rule of law, and environmental protection against the risks of AI.

What is it about?

The AI Act provides AI developers and “deployers” (= those who use AI systems under their own authority) with clear guidelines and responsibilities for specific AI applications. It follows a risk-based approach: different types of artificial intelligence are categorized according to their risk level. AI systems with limited risk will have minimal transparency requirements, while high-risk AI systems will need to meet specific standards and obligations to be allowed into the EU market. Certain AI applications, like cognitive behavioral manipulation and social scoring, will be banned due to their unacceptable risk. The AI Act also prohibits the use of AI for predictive policing based on profiling and systems that use biometric data to categorize people by specific characteristics such as race, religion, or sexual orientation.

The Regulation is part of a broader set of policy measures designed to foster trustworthy AI, which includes the AI Innovation Package and the Coordinated Plan on AI. Other specific, legislative acts are also making their way, such as the AI Liability Directive.

The AI Act is the first comprehensive legal framework regulating AI systems and could set a global standard. Last year, a Brazilian draft bill was published which is known to have been inspired by the AI Act. China and the United States have also adopted specific AI regulations last year.

 

Next steps

The AI Act has been published today, 12 July 2024, in the Official Journal of the EU. The regulation will come into effect twenty days after this publication, on 1st August 2024. From that date, the Regulation legally exists. However, it will only apply from 2nd August 2026. Before that date, the Regulation will not have legal effect yet. There are a few exceptions though, such as the Chapters I (general provisions) and II (prohibited AI practices) which shall apply from 2 February 2025.

The implementation of the AI Act will involve further steps. In the upcoming months, the Commission is expected to publish various implementing measures, delegated acts, and guidelines related to the Act.

 

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